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BUZZ-Aurora Cannabis: Drops as billionaire investor Peltz steps down as advisor

Published 2020-09-28, 11:24 a/m
© Reuters.
ACB
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** U.S.-listed shares of Canadian pot producer ACB.TO down 3.1% to $4.89 as co says billionaire investor Nelson Peltz resigned as senior advisor effective Sept. 25

** ACB tapped Peltz as a strategic adviser in March last year, betting on the consumer industry-focused investor to help the recreational marijuana maker chart its expansion into new markets

** However, Canadian pot companies have had a rough year as most continue to tackle oversupply issues with little cash on their balance sheets

** Many investors have also deserted the sector, frustrated with lack of profitability due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth

** ACB last week posted a loss of C$3.31 bln ($2.47 bln) for the year ended June 30

** ACB is down 81% YTD

($1 = 1.3383 Canadian dollars)

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